Section 301: Allocation of revenues between provincial and local tiers of government

(1) An Act of Parliament must provide for—

    (a) the equitable allocation of capital grants between provincial and metropolitan councils

and local authorities; and

    (b) any other allocations to provinces and local authorities, and any conditions on which

those allocations may be made.

(2) The Act referred to in subsection (1) must take into account, amongst other factors—

    (a) the national interest;

    (b) any provision that must be made in respect of the national debt and other national

obligations;

    (c) the needs and interests of the central government, determined by objective criteria;

    (d) the need to provide basic services, including educational and health facilities, water,

roads, social amenities and electricity to marginalised areas;

    (e) the fiscal capacity and efficiency of provincial and metropolitan councils and local

authorities;

    (f) developmental and other needs of provincial and metropolitan councils and local

authorities; and

    (g) economic disparities within and between provinces.

(3) Not less than five per cent of the national revenues raised in any financial year must be allocated to the provinces and local authorities as their share in that year.

PART 2

C ONSOLIDATED R EVENUE FUND